Premier announced that it has signed the sale and purchase agreement (SPA) with Chrysaor to acquire equity in Licence P164 in order to participate in the development of the Solan field in the UK for an upfront consideration of US$10 million, with US$10 million to follow upon sanction as well as a partial development carry. Premier will hold 60% equity and become Development Operator.
Premier will provide a loan to fund Chrysaor’s remaining share of the project costs, which will then be repaid by a cash sweep from a share of their revenue.
Project sanction is targeted for later this year.
Simon Lockett, Chief Executive, commented:
“We look forward to adding Premier’s project management skills to the significant work already put in by the Chrysaor team and together taking the Solan field through the development process.”
Source:Premier, May 31, 2011; Image:Chrysaor